I was, until recently, Economics Editor of The Telegraph. You can find my book - 50 Economics Ideas You Really Need to Know - here.

Don't be shocked if the cut is smaller than expected

Just like an economist to say this, but the interest rate decision today really could go either way. More interestingly, I wouldn't be at all surprised if the Monetary Policy Committee cut by less than the market expects. Currently traders have a cut of around a full percentage point (or 100 basis points) priced in. Many economists think this is a bare minimum, and that it could cut by even more than that.

A percentage point cut would leave rates at 2pc, equalling the lowest level since the Bank's foundation in the 17th century, while anything more would leave borrowing costs at an unprecedented low.

The economic news since the past rate cut of 1.5pc has been unremittingly bad, and today's house price index from the Halifax is no exception, clocking in at a miserable 2.6pc monthly fall.

What's more, the unexpected decision this morning by the Swedish central bank, the Riksbank (incidentally the world's oldest) to slash its rates by 1.75pc points – rather than the 1pc expected – raises the stakes.

It all points towards a big rate cut, so a second 1.5pc cut is not out of the question.

On the other hand, there are question marks over whether such a big cut is necessary. The risk is that the Bank uses up all its "ammunition" too early and finds itself at zero per cent with the economy still slumping further into recession.

Second, the massive fall in the pound since the last cut not only lessens the need to slash rates further (the rule of thumb is that a falling currency is equivalent to falling rates) but raises the question of whether the Bank should be ensuring this currency fall does not turn into a currency run.

All of which makes me wonder whether the Bank may surprise the markets and only cut by, say, 75 basis points. It's not something many city experts seem to be considering, which is hardly surprising given how far out so many of them (and indeed everyone else) were last month.

The real problem here is that despite having cut rates so dramatically last month, the cost of borrowing for many households – particularly first time buyers – remains as high as ever. Rate cuts will undoubtedly help, but the medicine is not as effective as many of us had hoped.